Tuesday, December 4, 2007

Stop for just one day. Delay unnecessary purchases for one day. Take charge of your spending. Yes, its addictive. Its cool to have a new gadget and sometimes that feeling lasts for days before the need to buy something else returns. Break the chain. Only you can do it.

BrandingIts amazing how much we identify with our brands – levi, gap, nike, etc. Not just any shoe will do its got to be a specific brand. We have many choices. But the selection rarely has anything to do with the quality of the item. Have you ever thought about how silly that is? Do you know where that attitude comes from? Its that same source that tells us everything we know about consumer products. Turn off the TV and Think for yourself.

The hidden costsWhen you make a purchase, not only are you spending that dollar, but also all of the future earnings from that dollar. Its real simple, It takes money to make money. So, when you trade away money it can no longer work for you. That money will not earn any interest for you again. Its gone forever. Take notice - this is powerful information.

Who owns who?All that Stuff requires maintenance. The more stuff you have the more time you must devote to maintaining it. Washing the car, painting the house, mowing the yard, washing the car, dusting the plasma TV, cleaning the bike, etc. The most valuable thing one can have is time and we give a lot of our time to stuff. All of that stuff owns you. When it gets to be too much – you know it. You get stressed out. People with less stuff and less choices have less stress.

Underlying issuesWhy do we spend so much on stuff we don’t really need? Are Americans using shopping to soothe their pains and fill the voids in their lives? Is living an uncomplicated and simple life really that boring? Is shopping patriotic? There are lots of theories out there and its probably a combination of things that vary from one shopoholic to another. An interesting take on this was presented in the documentary “Freedom Fries”. Check it out - Its an instant watch movie on Netflix.

Morningstar Style Box Returns

Trade Books

DISCLAIMER

The contents of this website are provided for informational purposes only and should not be construed as advice. I am not a personal finance professional. Please discuss your specific needs with a qualified professional.